More Auto Parts Makers Agree to Price-Fixing Class Action Settlements

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On Wednesday, Yazaki Corp. and TRW Deutschland Holding GmbH agreed to settle their portion of the sprawling automotive parts price-fixing multidistrict litigation (MDL), joining several other auto parts manufacturers who have reached class action settlements related to charges they conspired to fix the price of certain car parts.

Yazaki and TRW were accused of conspiring with other auto parts manufacturers to fix the price of occupant safety systems, including seat belts, steering wheels and air bags. The companies have already paid millions of dollars in fines to the U.S. Department of Justice. Yazaki has paid $470 million and TRW has paid $6 million to the U.S. government for their role in the alleged price-fixing scheme.

The Justice Department’s probe into price-fixing in the automotive parts industry has turned into the largest criminal antitrust investigation ever conducted by the agency. The investigation was announced four years ago and has led to criminal charges against dozens of companies throughout the world, resulting in billions of dollars in criminal fines paid to the U.S. government.

Yazaki and TRW announced their auto-parts price fixing settlement just days after Autoliv Inc.’s announcement that it would pay $65 million to direct purchasers, consumers and automotive dealers under the terms of a class action settlement. Like Yazaki and TRW, Autoliv was investigated for its role in the alleged conspiracy to fix the prices of occupant safety systems.

The parties have indicated that they expect the auto parts price-fixing settlement to be preliminarily approved in July.

Yazaki and TRW are just the latest auto parts manufacturers to settle their portion of the antitrust MDL. The first class action settlement in the auto parts price-fixing MDL was reached by Nippon Seiki. Nippon Seiki had been investigated for its role in allegedly conspiring to fix the prices of vehicle instrument panels. Last month, Lear Corp. agreed to pay $8.75 million to settle allegations that it had conspired with other auto parts makers to fix the prices of automotive wire harness systems.

Although auto parts makers are stepping up to settle their portions of the litigation, the dispute over price-fixing in the auto parts industry is far from over. In February, Panasonic Corp., Hitachi Automotive Systems Inc., Mitsuba Corp. and other auto parts manufacturers were hit with separate class action lawsuits accusing them of conspiring to fix the prices of air flow meters, power window motors, electronic throttle bodies, high-intensity discharge ballasts, steering angle sensors, electronic-powered steering assemblies and automatic transmission fluid warmers.

Details about how to file a claim for the auto parts price-fixing class action settlement were not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.

The plaintiffs are represented by Cotchett Pitre & McCarthy LLP, Robins Kaplan Miller & Ciresi LLP and Susman Godfrey LLP, among others.

The Auto Parts Price-Fixing Class Action Lawsuit is In re: Automotive Parts Antitrust Litigation, Case No. 2:12-md-02311, in the U.S. District Court for the Eastern District of Michigan.

UPDATE: On Oct. 7, 2016, JTEKT Corp. will reportedly pay $62.5 million to settle allegations it participated in a massive conspiracy to fix the price of automotive parts, including automotive bearings and electric powered steering assemblies.

UPDATE 2: September 2017, the automotive wire harness antitrust class action lawsuit have secured settlements from five defendants worth more than $249 million. Click here to file a claim.